IFC to Step Up Activities in Uganda, Supporting Small Businesses and Large Projects

Kampala, November 28, 2007 — IFC,
a member of the World Bank Group, aims to increase its investment and advisory
services activities in Uganda, focusing on financial market development,
infrastructure, and agribusiness, as it strives to improve the business
environment and help support a more sustainable private sector in the country.
At a briefing with reporters at the end of a two-day visit, IFC Executive
Vice President and CEO Lars Thunell affirmed IFC’s strengthened ties with
the country and commitment to helping the private sector create jobs and
growth. Thunell’s agenda included meetings with the Minister of Finance
Ezra Suruma, and representatives of the private sector. He also visited
the Bujagali Hydropower Project at Jinja, to which IFC has committed $130
million. Thunell’s visit was capped by a meeting with Ugandan President
Yoweri Museveni.
“IFC is working with companies across a variety of sectors to promote
private sector innovation and best practices in Uganda,” Thunell said.
“We will continue to build our business with a diverse range of financial
products and advisory services to meet client needs and ensure a stronger
development impact.”
IFC’s strategy in Uganda is to provide innovative investment and advisory
solutions for small businesses and large projects. The overall objective
is for IFC to have a positive and sustainable impact on the country’s
development.

IFC is helping Uganda address its housing
needs through a special mortgage funding program. IFC will also provide
advisory services to develop the housing finance sector and expand its
services to include more banks and the Housing Finance Company of Uganda.

Infrastructure is a major impediment
to growth, and IFC will work to attract more private investment into this
sector. IFC is helping Uganda reduce its number of economically crippling
power cuts through the investment in Bujagali. IFC has also committed $32
million to help rehabilitate and expand the Kenya-Uganda Railways, and
has advised the government on attracting private investment into the telecommunications
sector.

Thunell emphasized that Uganda’s strong
prospects for growth could be further enhanced by improvements in the investment
climate. Doing business in the country remains difficult, and Uganda ranked
118 out of 178 countries in the recently released IFC-World Bank Doing
Business report.
IFC is helping Uganda improve its business environment by addressing the
constraints to developing local micro, small, and medium enterprises. It
will support three types of programs: access to finance, business development
services, and the business enabling environment.

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.